FBR rescinds freezing of PIA’s bank accounts amid financial crisis
The Federal Board of Revenue (FBR) has reversed its decision to
freeze Pakistan International Airlines' (PIA) bank accounts on Thursday.
However, the FBR clarified that this action does not prevent them from pursuing
recovery proceedings.
The national carrier has been grappling with a financial crisis,
with 28 of its accounts frozen by the FBR on Wednesday. Additionally, Pakistan
State Oil had threatened to halt the airline's oil supply due to outstanding
dues.
These developments occurred while a team from the European Union's
Aviation Safety Agency (EASA) was in Pakistan to address flight safety
concerns. EASA had previously prohibited PIA from operating flights to Europe
after a plane crash in Karachi on May 22, 2020, prompted by allegations from
former aviation minister Ghulam Sarwar Khan about questionable qualifications
of 40% of Pakistani pilots.
FBR
Freezes PIA bank accounts over unpaid FED
In a notification, the FBR's deputy
commissioner for Inland Revenue stated, "This office has been directed to
withdraw the notice mentioned above and to de-attach the bank accounts of the
subject taxpayer with immediate effect." However, the board emphasized
that the de-attachment does not preclude the pursuit of "recovery
proceedings" under Section 14(3) of the Federal Excise Act, 2005, related
to the recovery of unpaid duty or arrears of duty.
PIA spokesperson Abdullah Khan confirmed the unfreezing of the
airline's accounts nationwide, stating that PIA and FBR's Large Tax Unit were
actively working to resolve the issue.
PSO’s
refusal to supply fuel forces PIA to cancel 14 flights
As PIA faces substantial financial losses, the government has
announced plans for the privatization of the debt-ridden airline and the
outsourcing of airport operations. Last month, PIA's operations came to a
standstill when Pakistan State Oil cut the carrier's fuel supply due to unpaid
dues, resulting in over 500 canceled flights in two weeks. Although operations
were eventually restored, the government has intensified decisions regarding
the airline's future, with the CEO canceling scheduled off days and instructing
senior officials to focus on the divestment process.
Source: Dawn